# European pharmaceutical industry economic decline > Developing situation record from CLSTR: https://clstr.news/situations/european-pharmaceutical-industry-economic-decline > Updated: 2026-11-01T23:00:00.000Z. Sources: 2. Developments: 2. The pharmaceutical sectors in Germany and Austria are facing significant declines in production and revenue. In Germany, the Association of Research-Based Pharmaceutical Manufacturers (VFA) forecasts a 2.2 percent drop in production and a 1.8 percent decrease in real turnover. These downturns are attributed to trade tensions and tariff threats from US President Donald Trump, as well as low water levels impacting production. Additionally, the German sector is experiencing stagnant job growth and criticism regarding government policies related to manufacturer discounts. In Austria, the decline is more pronounced due to high export dependency. The Austrian Chemical Industry Association (FCIO) reported an 8.4 percent value decrease in the first half of the year, with pharmaceutical specialties dropping by 12.7 percent. Industry leaders cite US trade policies favoring domestic production, restrictive local pricing and reimbursement regulations, high energy and labor costs, and increased competition from low-priced antibiotic imports from China as primary drivers. ## Timeline ### 2026-11-01: European pharmaceutical industry faces production declines German and Austrian pharmaceutical companies report production declines driven by US trade disputes, high costs, and competition from China. 2 sources. https://clstr.news/cluster/european-pharmaceutical-industry-faces-production-declines ### 2026-10-23: German pharmaceutical industry expects revenue decline due to US tariff disputes The German pharmaceutical industry forecasts a 2.2% drop in production and a 1.8% revenue decline due to US trade tensions and tariff threats. 10 sources. https://clstr.news/cluster/german-tool-manufacturer-wiha-werkzeuge-reports-us-tariff-uncertainty --- Cite as: European pharmaceutical industry economic decline. CLSTR, https://clstr.news/situations/european-pharmaceutical-industry-economic-decline